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Section 3: Explanatory Tables and Budgeted Financial Statements

Section 3 presents budgeted financial statements which provide a comprehensive snapshot of agency finances for the budget year 2008-09. It explains how budget plans are incorporated into the financial statements and provides further details of the reconciliation between the agency and outcome resource statements.

3.1: Explanatory tables

3.1.1: Reconciliation of total available appropriation and outcomes

The Agency resource statement (Table 1.1) details the total appropriation available to an agency from all sources. For departmental operating appropriations (outputs) this includes carry-forward amounts as well as amounts appropriated at Budget. As agencies incur and are funded for future liabilities, generally depreciation and employee entitlements, the total amount of departmental operating appropriation available to an agency is unlikely to be fully utilised in the Budget year.

3.1.2: Movement of administered funds between years

CASA does not receive administered funds.

3.1.3: Special Accounts

CASA does not maintain Special Accounts.

3.1.4: Australian Government Indigenous Expenditure

CASA has no Australian Government Indigenous Expenditure to report.

3.2: Budgeted financial statements

3.2.1: Differences in agency resourcing and financial statements

CASA does not have any significant differences between the resource information presented in the Budget Papers and Portfolio Budget Statements as a result of differences between Australian Accounting Standards (AAS) and Government Finance Statistics (GFS).

3.2.2: Analysis of budgeted financial statements

An analysis of CASA's budgeted financial statements, as reflected in the budgeted departmental financial statements for 2008-09, is provided below.

Budgeted departmental income statement

The budget and forward years reflect periods when revenue and operating expenses are expected to be relatively stable. CASA is budgeting for a breakeven position for the 2008-09 financial year. Total revenue in 2008-09 is estimated to be $149.1m, which is an increase of $6.8m from the 2007-08 estimated actual revenue. This is mainly attributable to increased funding provided as part of previous budget measures ($2.3m), an increase in expected special appropriation revenue from aviation fuel excise ($1.3m), an increase in fee income from regulatory services ($3.0m), and offset by a decrease in baseline funding reflecting the government's efficiency dividend ($0.7m).

Chart 3.1 illustrates relatively stable appropriation funding from 2008-09 onwards. It is expected that revenue from special appropriations will increase as a result of forecast higher volumes for aviation fuel excise collections in the forward years. The fall in total revenue in 2010-11 reflects the finalisation of funding for two of CASA's activities.

Chart 3.1: Revenue

(click on the image to view the larger version)

Total expenses and borrowing costs in 2008-09 are estimated to be $149.1m, an increase of $17.6m from the 2007-08 estimated actual. The overall increase is attributable to:

Employee expenses increasing by $8.8m. This incorporates an annual pay increase in 2008-09 and an increase in the staffing level.
Supplier expenses increasing by $6.3m. This is due to changes in operational demand.
Depreciation and amortisation expenses increasing by $2.5m. The movement reflects the increase in CASA's asset base as projects reach completion.

Budgeted departmental balance sheet

CASA's net asset (or equity) position is forecast to remain constant over the Budget and forward years, reflecting that current funding levels are expected to be adequate to support CASA's current operations during this period.

CASA's budgeted total assets of $93.9m in 2008-09 represents a decrease of $0.2m from the 2007-08 estimated closing position. This is represented by an increase in financial assets of $7.2m, offset by a decrease in non-financial assets (consumption of infrastructure, plant and equipment and software) of $7.4m.

Chart 3.2: Budgeted Assets for 2008-09

(click on the image to view the larger version)

CASA's budgeted liabilities of $36.1m in 2008-09 represent a decrease of $0.2m from the 2007-08 estimated closing position. This comprises a decrease of $0.9m in interest bearing liabilities, reflecting the purchase of some IT equipment outright, offset by an increase of $0.7m in provisions and creditors (including employee entitlements and supplier payables). CASA's primary liability continues to be accrued employee salary and leave entitlements of $20.1m.

Chart 3.3: Budgeted Liabilities for 2008-09

(click on the image to view the larger version)

3.2.3: Budgeted financial statements tables

Table 3.2.1: Budgeted departmental income statement (for the period ended 30 June)

Table 3.2.2: Budgeted departmental balance sheet (as at 30 June)

Table 3.2.3: Budgeted departmental statement of cash flows (for the period ended 30 June)

Table 3.2.4: Departmental statement of changes in equity summary of movement (Budget year 2008-09)

3.2.4: Notes to the financial statements

Basis of accounting

The budgeted financial statements have been prepared on an accruals basis and are in accordance with the historical cost convention, except for infrastructure, plant and equipment assets and employee entitlements. Infrastructure, plant and equipment assets are revalued every year using a fair value methodology. Employee entitlements are measured at the present value of estimated future cash flows based on periodic actuarial assessment.

The budgeted financial statements contain estimates prepared in accordance with the requirements of the Australian Government's financial budgeting and reporting framework, including:

the Finance Minister's Orders;
Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board; and
specific guidelines provided by the Department of Finance and Deregulation.

Departmental and administered items

Departmental assets, liabilities, revenues and expenses are those items that are controlled and used by CASA in producing its output and include:

computers, plant and equipment used in producing goods and services;
liabilities for employee entitlements;
revenue from appropriations or independent sources in payment for outputs; and
employee, supplier and depreciation expenses incurred in providing agency outputs.

CASA has no administered items.

Budgeted departmental income statement

Appropriation revenue
The agreed price of outputs appropriation estimates are generally adjusted for wage cost indexation less an efficiency dividend.

Estimates for funding from special appropriations have been made on the basis of expected aviation fuel excise collections.

Other revenue
Revenue from other sources primarily represents revenue from cost recovery, purchase provider arrangements and interest.

Departmental expenses
Employee expenses represent payments and net increases in entitlements to employees for services rendered in the financial year.

Supplier expenses represent payments made to suppliers for goods and services used in providing CASA's output.

Depreciable plant and equipment, buildings and intangible assets are written-off to their estimated residual values over their estimated useful life to CASA using the straight-line method.

Budgeted departmental balance sheet

Departmental assets - financial assets
CASA's financial assets are maintained to fund CASA's capital replacements, settlements of employee entitlements and creditors, and to provide working capital.

Departmental assets - non-financial assets
These items primarily represent future economic benefits that CASA will consume in producing its output. The reported value represents the purchase price paid less depreciation incurred to date in using the asset.

Other non-financial assets represent prepaid supplier expenses as at balance date.

Departmental liabilities - interest bearing liabilities
The main interest bearing liabilities for CASA comprise IT equipment which have been provided under finance leases in accordance with the government's IT outsourcing arrangements. These are amortised over the life of the lease.

Departmental liabilities - provisions and payables
Provision has been made for CASA's liability for employee entitlements arising from services rendered by employees. This liability includes unpaid annual leave and long service leave.

Provision has also been made for unpaid supplier expenses as at balance date.

Appendix 3.2.1: Total budgeted revenue

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